Centrelink would still be likely to class that asset as your own for the purposes of assessing benefits if you are appointor, or a beneficiary or if you influence any control over the trust.

Michael,

This is not so. In some states, such as NSW, the trust deed is required to be stamped (costs you $500 too!!). The stamp is just a small imprint stating the date and the amount of duty paid. They usually try to stamp it on the schedule page which is usually the one with the beneficiaries listed. But often these go over several pages.

Even after stamping it would be possible to legally amend the deed (and illegally possible to change it), assuming the trustee has the powers given in the deed.

But changing the beneficiaries of a trust could be seen as causing a resettlement and this would mean a new trust is formed with all the property of the trust being transferred automatically = stamp duty and CGT.

For centrelink purposes it is possible to remove yourself as trustee, appointor etc, and as a beneficiary, but Centrelink can apply that test they use for disposal of an asset – they can still assess you as owing it for up to 5 years after disposal. Some lawyers think removing a beneficiary will result in a resettlement too. So I think centrelink accepts a beneficiary making an unrevocable declaration that they are forever renouncing taking a benefit from the trust.

Its a very complex area and if your trusts have that many assets anyway it is probably not worth the bother and legal fees to try to get $500 per fortnight in payments.

imagine the trail after 5 years. 15 years…….

Just think of the trust as a person.

A person can gift to another person without any tax implications.
Capital of a trust can be distributed as a gift too. The receipt of the gift wouldn't be income. But as Luke said the trust cannot claim a deduction for the gift (assuming no charities etc).

It is probably not a good idea to make interest free loans to a discretionary trust. There is no tax advantage over gifting and adverse asset protection reasons.

If the trust had $5,000 income and gifted or loaned $2,000 to you it would still have $5,000 in taxable income. If this isn't distributed to a beneficiary the trustee would pay tax on the top marginal rate.

If you forgive the loan and the $8,000 becomes a gift the same would apply.

Imagine the trails on $1B!

Miike

You can do that and depreciate assets in proportion. But beware as you will lose the CGT exemption on the house. Which may cost you must more than you will save in the short term.

Have a read of the legislation again.

maybe Pete Raiss

Purchase in a company. It will limit liability and provide flexibility.

Talk to your accountant if this company should be acting as trustee for a trust or the shares owned by a discretionary or a unit trust.

 
you need to consider:
flexibility
asset protection
stamp duty
land tax
finance

I would advise people to be very careful when dealing with overseas "lenders". Often these "lenders" string people along with promises of finance. They collect all of your personal documents and then 'assess' you. You will nearly always be approved subject to paying a fee of some sort. Guess what happens when you pay the fee?

Then consider they have all your personal documents, including identity documents!